Well Servicing Magazine: October 2022

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OCTOBER 2022

IN THIS ISSUE • Creative Onboarding • Operational Skilling • Gender Equity in the Middle East • How to Win the Energy War

The Advocate

Liberty Energy's Chris Wright wants you to be bullish on the industry



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CONTENTS 4 ISSUE 5 • OCTOBER 2022 An Energy Workforce & Technology Council Publication

Leslie Beyer, Energy Workforce & Technology Council

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LESLIE BEYER CEO/Editor in Chief

12 MOLLY DETERMAN COO/Editor

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COUNCIL STAFF

Fracking the Traditional Mindset Operational Skilling is Vital for Workforce Performance & Success Jai Shah, Kahuna Workforce Solutions

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PEGGY HELFERT Vice President Programs & Events

CORRY SCHIERMEYER Senior Director of Communications

Market Outlook

Megan Winchell, Universal Pressure Pumping

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JUANITA RAINS Vice President Finance

Cover Story: Chris Wright, CEO & Chairman of the Board, Liberty Energy

Amy Chronis, Deloitte LLP

STEPHANIE FUQUA Director of Marketing

TIM TARPLEY SVP Government Affairs & Counsel

CEO’s Perspective

How to Win the Energy War: Tell Better Stories Brian Gitt, Energy Entrepreneur

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Cummins Arabia: Advancing Gender Equity in the Middle East Maninder Kaur, Cummins Arabia

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Breaking Down the Inflation Reduction Act Deidre Kohlrus, Energy Workforce & Technology Council

MARIA SUAREZ Director of Government Affairs

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Energy Workforce Hosts State Department Officers

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Former White House Press Secretary Ari Fleischer Offers Election Outlook

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Congressional Spotlight: Rep. Kelly Armstrong (R-ND)

EDDIE BOWMAN Events Specialist

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Events Calendar

SUSAN DUDLEY Administrative Assistant

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Advertisers Index

DEIDRE KOHLRUS Director of Government Affairs RONI ASHLEY Director of Operations PHILLIP DEBAUCHE Director of Environmental & Technical

ABOUT THE COVER Chris Wright, CEO and Chairman of the Board, Liberty Energy (Photo by Cassandra Suppes) Well Servicing Magazine is published by Energy Workforce & Technology Council as a complimentary publication.

2500 Citywest Blvd., Suite 1110 Houston, TX 77042 713-932-0168 info@energyworkforce.org wellservicingmagazine.com

Copyright 2022 Energy Workforce & Technology Council

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CEO’S PERSPECTIVE/

Telling the Story By Leslie Beyer, CEO, Energy Workforce & Technology Council

Members, Earlier this year, Energy Workforce leadership held a strategy session with a cross-section of our Members to discuss our next three-year strategic plan for the organization. This group developed a diverse set of recommendations for activities to initiate, continue and reconsider. After reviewing the recommendations with the Board of Directors and Advisory Board, we have agreed to endeavor stronger than ever in our workforce development training and certification programs and advocacy efforts, and sunset a few of our marketing elements. Specifically, it was concluded that although Well Servicing Magazine has had a great run and met its purpose for more than 60 years, it is time to bring its hard copy production to a close – but not the important news of our sector. We will continue to tell the stories of our Members and the industry through other platforms with wider reaching audiences. This last edition of WSM highlights the importance of engagement and advocacy to provide ideas and pathways for us all to advocate on behalf of the industry, or to learn to become a voice for our workforce, and our role in the broader energy system. Energy Workforce is here to advocate on your behalf, and we have built out our outreach, engagement, communications and public affairs teams to support that effort. But our impact is even more successful with your voices. We should all be Ambassadors for our industry. I am proud of the work we do to ensure reliable, affordable energy is accessible to our fellow Americans, and to consumers around the world. Without your work, your innovation, and your dedication, many more people would live in energy poverty, we would all pay higher prices, and our energy security would be further jeopardized.

Leslie Beyer CEO Energy Workforce & Technology Council

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Being an ambassador for the industry isn’t only for those in advocacy and government relations – we all have a role to play, even within our own circles. Let’s ensure those around us know the facts, understand the importance of the work you are doing, the innovative and technology-driven industry we are, and how far our industry has come in reducing emissions. Our world is a better place when we have a prosperous domestic oil and gas industry and our friends, neighbors, civic leaders and government officials rely on us to let them know the positive impact we are making in their everyday lives. Energy Workforce is here to continue to provide insightful updates and information on industry trends, best practices, legislative updates and industry profiles. We provide weekly updates through our Energy Workforce newsletter delivered via email and the daily updates we post across multiple social media platforms. We also host the Energy in Transition podcast, featuring interviews with leaders across the spectrum of the energy industry. U.S. energy production is imperative for the future of our economic and national security. I am proud to advocate for this industry and our members that are in the forefront of innovating and implementing the best in new and improved technologies that make energy production stronger in the U.S., more efficient and lower in emissions. Thank you for leading the way in providing the most reliable and affordable energy across the globe and allowing us to continue to tell your stories. BEHIND THE SCENES: Energy Workforce COO Molly Determan and SVP Government Affairs Tim Tarpley interview Chris Wright, Liberty Energy, at his office in Denver.


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‘‘WE HAVE TO BE HONEST, OUR STORY IS FANTASTIC’’ By Corry Schiermeyer, Energy Workforce & Technology Council

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C

hris Wright, CEO and Chairman of the Board for Liberty Energy, is eager to tell the story of the energy services industry – to the workforce, his community, stakeholders or the media, and when he does, he has one main guiding principle: be honest. “I struggle with why more people don’t talk positively about our industry,” Wright said. “For years, it has been, ‘keep our head down and just don’t say anything.’ That doesn’t work. We have to be honest. Our story is so fantastic.” Wright has become a bold advocate and speaks extensively on energy and the merits of the shale revolution, often with lawmakers, appearing frequently on network television, contributing to documentaries and podcasts, and launching social media campaigns – all providing a rational, sober discussion to the benefits of hydrocarbons. “Two things created the modern world, the rise of human liberty through bottom-up social organization instead of top-down social organizations, and hydrocarbons,” he said. “Human life expectancy went from 30 years to 70 years because of those two things. Now we have an ESG movement that is

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explicitly anti-hydrocarbons, and proscribes a topdown checklist of what virtue is; I believe that this is wrong.”

Energy Transition vs Energy Expansion

Environment, Social and Governance (ESG) along with energy transition are the hot buzz words in the political arena of ways to combat climate change and prove a company’s commitment to green energy. Wright believes there are major flaws with both terms. “Energy expansion is actually a good term. The biggest crisis in the world today is the world needs more energy,” he said. “We aren’t in an energy transition. Hydrocarbons went from 87% of global energy 30 years ago to 83.5% today. That’s not an energy transition.” He explained that the move away from hydrocarbons is many years away, possibly another 100 years, and to continue to press for a rapid, reckless energy transition is dangerous for humanity. “(In the western world) We live these wonderful modern lifestyles, elevators, fancy clothes, etc.


because of hydrocarbons. A third of humanity does not have reliable access to hydrocarbons. They haven’t had this energy transition.” Wright is a self-proclaimed humanitarian with a passion for bringing the benefits of energy to every community in the world. “The arrival of hydrocarbons transformed the human condition, made the modern world, provided for healthy lives, planes, trains and automobiles, the internet, electronics – all of these things came from hydrocarbons. A good chunk of humanity hasn’t realized the benefits from that. If we care about humanity and human well-being, the energy transition we need is to focus on providing energy, not taking it away, making it less reliable and cost prohibitive.” He is also critical of investment firms reluctant to provide capital for fossil fuel companies. He specifically mentioned Blackrock and its stance on requiring businesses in their funds to report how they will align with the Paris Climate Accords.

Energy is Bettering Human Lives

In response to this movement, Liberty Energy has produced a report supporting the growth of hydrocarbons, entitled “Bettering Human Lives” that outlines the importance of oil and gas in our energy future and the detrimental effects of solely focusing on climate change as the number one crisis across the globe. “Our Bettering Human Lives project was in part a response to Blackrock, Vanguard and State Street (ESG policies and priorities) and lays out how we view the world. We believe our industry is the most important industry in the history of the world because it is the enabler of everything else that betters human lives.” The report highlights Wright’s three global energy challenges in order of priority: energy poverty, access to energy and climate change. He said billions of people around the world face energy poverty, including “a third of humanity who are burning wood to cook their daily meals, and three million people die from that a year.” “We need to build infrastructure and export more propane. Propane is the fuel that people can easily have for clean cooking fuel,” Wright said.

The report outlines how energy poverty has significant negative impacts on women and children around the world. Women in energy poverty spend roughly two hours a day just looking for wood to burn for cooking and heating, as well as searching for some form of clean water. “If they get a clean cooking stove and a water pump, they will have clean water from ground water, they have clean cooking fuel and in turn their health will be better, their kid’s health will be better, literacy rates will rise, and economic opportunities increase. This is a solvable crisis, and I believe this is the number one priority of our time by far.” Secondly, the report emphasizes the importance of providing affordable, secure and reliable access to energy, not just around the world, but domestically. Wright notes 12% of Americans have received utility disconnection notices in the last year due to high energy costs. He continues with the warning that, “if we do what California has done or what Europe is doing (in response to banning fossil fuels) we make energy more expensive. It is hurting the life opportunities of low-income people, even in America. That is a problem.” Lastly, the report mentions climate change as something society must balance costs versus benefits. “Net zero poverty by 2050, that is my goal, even if it means incremental increases of emissions,” Wright said. “Lack of energy access represents 10 million or more preventable deaths a year. We can address this with more propane, more energy infrastructure, less rich country idiocy preaching and putting barriers in the way of low-income countries and low-income citizens. We want to reduce the temperature of the earth by a few tenths of a degree three generations from now. And that’s supposed to be more important to us than 2.5 billion people getting clean cooking fuel and living longer lives. That’s just wrong.” Politicians and anti-hydrocarbon entities that believe the world must hit net zero carbons in the next decade or two are being disingenuous and causing detrimental outcomes at home and abroad, including energy insecurity and unaffordable or reliable energy, he said. WellServicingMagazine.com

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2,000 jackets with the Liberty logo from the company. Soon after, another oil and gas company approached The North Face to purchase products for marketing purposes as well. This time, The North Face refused – stating it did not want to do business with the company because they produced hydrocarbons. “The hypocrisy is so high,” Wright said. “North Face can’t make their products without hydrocarbons. Their products are made out of hydrocarbons, and the activities their clothes and equipment support are impossible without hydrocarbons.”

He mentioned the move to lower carbon emissions have been happening naturally for more than 150 years.

In response, Wright produced a six-minute video, his first video discussing the controversy. Roughly 15,000 people saw that video. Then Wright condensed the message and flipped it – congratulating The North Face for being such a great customer of hydrocarbons.

“We’ve been decarbonizing for 150 years. Coal is lower carbon intensity than wood, oil is lower than coal, gas is lower, nuclear is lower. Greenhouse gas emissions on a per person basis in the United States is lower than any year since I was born. This is not government regulations forcing this, we are naturally moving away through technology,” he said.

“The second video … instead of 15,000 views, it got 6 million views! Sometimes it is important to put some humor in the discussion.”

“Changing greenhouse gases are a slow-moving, long-term issue that technology will fix and take care of, but not in one, two or even three decades.”

“I think the outlook for our industry and our customers is quite good. I think the next five years or so will probably be good for our industry. We are moving towards a healthy service sector that we haven’t seen in years.”

There are times where humor is also imperative in the discussion of the importance of oil and gas, Wright said. One such example is an issue that came up with The North Face company. He and his wife are avid climbers. A good friend and fellow climber was a lead athlete for The North Face and that relationship led to Wright ordering 10

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Market Confidence

Wright is also bullish on the industry, and not just the positive global impact oil and gas has had, but the future of fossil fuels in the marketplace.

There are potential ups and downs, but overall, the market outlook is positive, he said. “We could have bumps, and even a pullback in the next year or two with a coordinated global recession. But as soon as there is any rebound, we


will be in a tight market, and we may remain in a tight market for some time.” He noted the lack of investment in the industry for the better part of the last decade has made for tight markets. Additionally, poor political decision-making and vilification of the energy industry has made for a lack of infrastructure and underinvestment in global energy infrastructure. “Unfortunately, outside of the U.S. and Canada, we have $200-300 oil equivalent prices for natural gas. This is awful. This is the market today. That isn’t a resource issue; it’s an infrastructure issue.” Wright also worries about the geopolitical implications on the market and energy affordability. “If we lose oil globally, if Russia can’t find a home for its oil exports, if Libya doesn’t get back into shape, Nigeria declines further, if we have any upset in Iraqi oil production, all of these could drive $200 oil, which is not good for the world,” he said. But for the first time in almost a decade, the supply and demand favors energy services. “The biggest concern I hear from customers today is not necessarily price, they just want the services. They may have four rigs and need two frack fleets and they just want to make sure those wells get fracked. The service sector is moving into a much healthier place.”

Employees are Great Ambassadors

As Wright has emerged as a great advocate for the industry, he recognizes that he can’t carry the standard alone. He urges people who work in the industry to tell their story – the story they know – and be proud of it. “People should speak up more,” he said. “Speak to your neighbors. Speak to what you know about.” But its not just the employees who should speak up. Leadership must also empower their employees to be ambassadors. “If someone is going to drive hard and work hard for your company every day, (as a leader) you better take the effort to engage them in the broader role their work has, what’s the impact on the country on

this community and on this world. You must bring that message (to the workforce). It is so uplifting, it’s so inspiring, and it is true,” he said. “Everyone wants to change the world, and we are one of the few industries that really does change the world. Many people don’t know, they don’t hear it and they need to. If they know the impact of the work, they will be proud and they will tell others.”

Actions Make a Difference

In addition to becoming vocal ambassadors for the industry, Wright noted the energy workforce is already spreading positivity throughout their communities by being good citizens. One example he noted is when Boulder County, north of Denver, experienced devastating flooding throughout their community, Liberty employees did not hesitate and raced to their assistance. “This is a community that is not supportive of our industry. Many yards have anti-frac signs in the front. But when they were in need, we had crews with our busses in the community bringing people food and water, cleaning out damaged homes and helping people out of harm’s way.” “This is what our workforce is about, neighbor helping neighbor,” Wright said. “Even when that community may have been vilifying us yesterday, today they were in need, and we were there for them.” Wright is also proud of the workforce at Liberty Energy. He has a simple message to other leaders as they work to build their workforce – find the people who are going to help you succeed. “I have a dirt-simple principle: how are you going to win? You want to pick players on the team that care about what they do. That believe in what they do,” he said. “We want you to move the ball forward. We don’t tell people when to get to work, when to leave work, how to take their days off. We do want people in the office, but we have always had a flexible schedule. We want people to get the work done but we aren’t going to shepherd over you. So, we find great humans who love what they do and then empower them.” WellServicingMagazine.com

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MARKET OUTLOOK/

Striking the Balance HOW AND WHERE WILL OIL & GAS PRODUCERS DEPLOY THEIR CASH? By Amy Chronis, Deloitte LLP

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hile the world underwent a big shift over the last few years, another realignment has been underway in the oil and gas industry. The COVID-19 pandemic, geopolitical developments, and underinvestment in hydrocarbons have pushed energy commodity prices to record levels, causing a readjustment in energy markets, trading relationships, organizational priorities, and broader energy market narratives. As a result, the industry is likely to generate its highest ever free cash flow of $1.4 trillion in 2022 (at an assumed average, Brent oil price stands at $106/bbl in 2022). Additionally, over the last few years, the industry’s attempts to improve its capital discipline have paid off—it is in one of its healthiest periods currently, with its lowest ever leverage ratio (20%) and one of its highest ever dividend yields (6%), compared to other sectors. Armed with record cash flows and favorable financial health, oil and gas companies now have important decisions to make—where to invest, and how much. But evolving questions around energy security, diversification, and transition, and the uncertain trajectory of future oil and gas prices are creating a “trilemma” of concerns for companies. And while companies will have to make decisions to prioritize investments and balance the trilemma, they will also need to think about fulfilling their base priorities toward shareholders and other stakeholders. The good news is that even after servicing their base corporate priorities, global upstream companies are still likely to have a cash war chest of $1.5 trillion between 2022 and 2030. This surplus is substantial enough to move the needle on the

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industry’s share of green capex from its current 5% to 30%, can potentially kickstart the lowcarbon economy, or can technically make the industry completely debt-free. With net-zero goals looming on the horizon, low-carbon investments are likely to feature prominently among oil and gas companies’ priorities. And while the industry has already made strides in establishing and progressing on its low-carbon goals over the last few years, the expected cash surplus is likely to boost the momentum. It could also allow companies to be more amenable to any losses in returns as they transition to a low-carbon future. Ultimately, a healthy and disciplined oil and gas industry could propel—and not hinder—the energy transition. It could help overcome problems of underinvestment and supply concentration by providing affordable and accessible hydrocarbons. And aided by a supportive regulatory environment, the oil and gas industry with its financial heft could likely drive an accelerated transition to a lowcarbon world. For more information, please visit Deloitte.com/us/ strikingthebalance. ...................................................................................................... Amy Chronis is vice chair, the U.S. Oil, Gas & Chemicals (OG&C) leader, and the managing partner for Deloitte’s Houston practice. Chronis has more than 30 years of experience serving public and private enterprises from emerging businesses to Fortune 500 companies, with a focus on the OG&C, technology and manufacturing industries. Chronis served as Deloitte’s U.S. lead relationship partner for one of the world’s largest integrated oil and gas companies, as well as other Houston enterprises. In addition to her Houston practice leadership role, she is the U.S. lead relationship partner for several international oil, gas and chemical companies.


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THE ADVOCACY ISSUE/

FRACKING THE TRADITIONAL MINDSET By Megan Winchell, Universal Pressure Pumping

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here's a new type of fracking emerging in the oil and gas industry that is providing an unprecedented competitive advantage in the oil patch: creativity. The nationwide labor shortage has prompted energy companies to be nimble and creative in

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recruiting and training field employees beyond traditional backgrounds in farming, mining and highrisk outdoor environments. By thinking and acting differently, these forward-thinking enterprises have transformed their onboarding models to extract new talent, bridge the knowledge gap, provide thorough safety training for new hires and broaden


employees’ hands-on experience before they head to the job site. In this new era of creative onboarding, employee orientation has swapped passive PowerPoint and video training for participatory, practice-oriented instruction aimed at providing a high level of understanding about stringent safety protocols to maintain a safe work environment. Gone are the days when personal protective equipment (PPE) was handed out after viewing a series of slides. Instead, employees are coached on how to assemble, adjust and wear a hard hat for optimum protection from falling objects and overhead hazards. Employees who will be wearing fall protection on the job site practice properly attaching the anchorage, and inspecting and wearing a full-body harness and connector. New hires also learn how to wear and clean respiratory equipment to protect against breathing in silica dust, cement and chemical vapor in the field. In addition to fully understanding the purpose and uses of PPE, companies are providing driver safety training to boost safety in the field. Employees learn practical, hands-on defensive driving habits in an engaging classroom setting and receive behindthe-wheel instruction from crash-avoidance trainers for smart decision-making and certification. To ensure workers can safely operate powered industrial equipment and are OSHA compliant, forklift training has shifted dramatically from a docile classroom presentation to experiential vehicle operation, inspection and maintenance before certification. As a result of one-on-one guidance and interaction, employees and their companies are working in tandem to reduce preventable accidents, safeguard people and protect field assets. While onboarding and training isn’t new to the century-old oil and gas industry, the uniqueness of who is being onboarded, how they are being trained and the benefits of their training reflects outside-the-box creativity. • Valuable new employees are being attracted and retained beyond the traditional talent pool. • Roll-up-your-sleeves learning allows

employees to self-correct under the guidance of experienced industry professionals and to become comfortable with a company’s processes, procedures and expectations. • Holistic learning experiences are anchored to a person’s memory and can be recalled more quickly than dry textbook information, watchand-learn simulations and third-party narratives. • Over the course of onboarding, new employees are engaging both sides of the brain – the left hemisphere for listening and analyzing pro cesses, and the right hemisphere for visual and spatial processes – which enables greater retention of relevant information. Beyond onboarding are opportunities for certified employees to participate in technical development programs and operations schools. Here, employees become hands-on proficient in lockout-tagout safety procedures to isolate and render inoperative hazardous energy sources on dangerous equipment to prevent accidental startup prior to maintenance or repairs. As part of their technical training, employees demonstrate to a trainer how to read chemical data sheets, as well as the use, procedures and specific PPE for handling hazardous chemicals. With a mindset on safety, companies also are conducting walk-throughs in which employees participate in hazard identification and risk assessment exercises alongside an instructor to promote awareness and control. The underlying link between all aspects of beyond-the-norm recruiting and training is a commitment to safety, efficiency and innovation. Companies that have meticulously sharpened their skills at training in-house and on-site for both onboarding and technical training have done so around standard operating procedures rooted in these three attributes. Of course, a company can onboard and train extensively, but open two-way communication is imperative for long-term success. Cultures of caring are becoming more than mission statements on websites as companies walk the talk by hosting WellServicingMagazine.com

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leadership boot camps and other multiday events that bring together employees and top brass. Discussions ping pong amongst participants, yielding ample feedback and highlighting issues and operational concerns that warrant further dialogue to make improvements and meet employee needs.

solutions – long-embraced industry cornerstones – to approach problem-solving, leadership practices, organizational structures and techniques with powerful creativity.

Open minds and open communications result in creative thinking to answer tough questions in Here's where the rubber meets the road. Compa- ways not previously seen in the fracking industry: ny executives, starting with the president, are com- an existing outside vendor can be incorporated into mitting to be at job sites, in shops and at facilities the team to expeditiously solve a problem; a CEO to collaborate with employees, obtain feedback and can put boots on the ground at a jobsite to escalate communicate a company’s direction. Face to face an issue or address a situation; employees at all … person to person … one on levels can become part of a creative one … a two-way street. mindset that challenges age-old “Open minds and conventions with positive disrupThey know that thinking outside tions and innovative workstreams to open communithe box requires being outside of meet technical problems. cations result in the corporate office to be present, listen and respond to emAlso at the forefront of creativity is creative thinking ployees during onboarding and a mindset of accommodation. Into answer tough training, at job sites and offices. office staff and remote employees To supplement on-site visits and are being given opportunities that questions in ways as a lifeline to ongoing two-way advance work-life balance. In the not previously see field, companies are progressively communications, periodic surveys encourage every voice to be considering requests for different in the fracking heard anonymously and without work schedules. There’s a fine line concern. to walk on both sides, and employindustry.” ers are working with employees to Similarly, in-person and virtustrike a mutually beneficial balance. al town halls promote a culture of caring and promote an open-door policy that On the flip side of this win-win scenario for emwelcomes questions, concerns, suggestions and ployees and their employers are customers who valuable insight in a safe, employee-centric envibenefit from creative solutions that lead to improveronment. For example, an employee might want ments in well performance, nimble resolutions, clarification on how and when to execute stop work greater confidence and brand loyalty. authority in an unsafe condition, to which the company can respond with communications about stop Onboarding. Culture. Relationships. Brand. These work authority appropriateness and how it can be are among the many things that can be enhanced used in an unobstructed way that doesn’t neces– even transformed – by creativity, and the leaders sarily shut down operations completely. in this new way of thinking and executing are taking their rightful place as champions in the oilfield. Creative thinking also applies to the organiza..................................................................................................... tional chart. Thought leaders who have climbed Megan Winchell is senior director of HSE at the ranks from technical positions to management Universal Pressure Pumping, the hydraulic roles are very intentionally flattening the traditional fracturing business of Patterson-UTI. She is a control structure to eliminate the steep hierarchy of collaborative leader in the oil and gas induspeople and abundant layers of red tape that stifle try and has more than 20 years of experience the ability to address and adjust to change quickly. in U.S. and international operations. Winchell In doing so, these reality-savvy professionals are moving beyond performance, technology and 16

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is skilled in stakeholder alignment and team development to drive solutions and create change.


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THE ADVOCACY ISSUE/

Operational Skilling is Vital for Workforce Performance & Success By Jai Shah, Kahuna Workforce Solutions

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egardless of where your organization sits in the ever-expanding energy value chain — operator or service provider in upstream, midstream, downstream, traditional, non-traditional or renewables — the safety, competence and capability of your workforce is key to the sustainability and success of your operations. Developing a comprehensive strategy for operational skilling can have massive benefits for the top and bottom line of your organizational performance. What is operational skilling and how can it impact your field services organization?

Validate Workforce Skills

Operational skilling is a modern approach to what's often referred to as competency assurance. It identifies, assesses and verifies employee knowledge, skills, abilities and experiences across the workforce. The complex nature of workforce data in energy organizations — especially field services where personnel deploy across global job sites — reinforces the need for a more standardized understanding of workforce capability and a more streamlined process for documenting data in an accessible, digitized system.

Traditional Competency Assurance Processes Aren’t Sustainable

With regulatory requirements, societal expectations and tech advancements causing increased change within the energy sector, validating a worker's proficiency level is essential. Without it, initiating reskilling or upskilling programs to advance your workforce or guarantee that employees have the skills to operate safely is nearly impossible. Traditional competency assurance programs track operational skills in files, folders or spreadsheets. Eventually, these all end up in boxes or binders in a closet or filing cabinet. This documentation is not easily accessed by employees or managers, mak18

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ing onboarding, training, development and scheduling difficult and time-consuming. This old way of tracking compliance and competence is impossible to continue at scale. It will be costly to your operational budgets, compliance scores, the safety of your teams and your organization's ability to evolve with the industry. Let's take a closer look at how a modernized operational skilling approach to competency assurance can impact your organization.

Close the Experience and Skills Gaps

Field service organizations are facing difficulty with the number of engineers and technicians retiring versus the number coming into the industry. "Field Service News" reports that 73% of organizations have identified an aging workforce as a potential threat to their field service operations, illustrating the departure of knowledge and the increasing gaps in experience and skill levels across the workforce. Field Service reports, "Not only does the industry need to bring in the new younger workforce, but it also needs to make sure the older engineers and technicians are still around to transfer their skills and train their incumbent peers." KPMG found that eliminating outdated skills processes can materially positively impact employee retention. One oil and gas company lost many of the millennials it had recruited using the same onboarding and training procedures as it had used for 20 years. Switching from paper-based to automated processes, they saw an increase in retention rates. Additionally, Deloitte suggests that developing agile workforce structures can help match skills to projects, launch training and development programs to reduce the skills gaps, and positively impact employee retention. In a study conducted


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by the Society of Petroleum Engineers, 53% of respondents said a lack of training and development opportunities would lead them to consider leaving an employer, and 75% said training and development was important in their choice of role. Finally, Mercer found that 14% of companies have instituted a skills-based talent strategy, such as a pay-for-skills program to compensate and help attract, build, and retain critical skills and talent.

skills required, yet they’re still deploying to the job site. Conversely, other team members are 100% competent. With this high level of incompetency across the team, not only are the more experienced employees doing their part of the job, but they’re also completing others’ work as well, and likely, without recognition or extra pay.

Without operational skills documentation, this Skills-based strategies, such as operational skillscenario will continue to be your organization's ing, tremendously impact how organizations attract, operating environment. Experienced technicians retain, and develop talent. Operational skilling gives and engineers will continue to experience burnout. you an understanding of the exact skills and abiliAt the same time, those who lack the required skills ties across the workforce, enabling and competencies will go without you to construct your teams based training they need to close skill “Not only does the the on the availability of skills and and experience gaps. reduce unnecessary training by industry need to developing personalized plans. Ultimately, this results in more bring in the time wasted and less productivEmployees gain insight into their ity, job completion, and revenue new younger potential career paths with the generation. Operational skilling workforce, but organization and how they can gives you accurate skill insights to improve their skills to achieve that deploy teams based on the right it also needs to goal. Ultimately, they'll feel more mix of skills and upskill employees make sure the invested as an individual, and the to achieve the required proficiency organization will build and put levels based on organization and older engineers more qualified teams in front of the job needs. and technicians customer. Competency records reflect skills, knowledge, and ability Demands of the Industry are still around to and provide your organization with A shifting focus to renewable insights to better reward and rectransfer their skills energy, the incorporation of artifiognize your technicians, engineers cial intelligence, virtual reality and and train their and front-line workers. augmented reality for predictive incumbent peers.” maintenance and on-the-job trainLack of Skills Data ing, and collaboration tools and Sixty percent of employees cloud platforms used for analytics working in oil and gas admit they and on-site operations are changdon’t feel in control, and 46% coning how your technicians and fess there are times they’ve felt like running away. front-line workers operate. With these high percentages of burnout affecting employees throughout your organization, it’s esThese new technologies will enable field sersential to build balanced teams based on validated vice organizations to take a quantum leap forward experiences and skills through operational skilling. regarding efficiency, effectiveness, productivity, and customer experience. But navigating the new techLet’s paint a picture. You have a team of employnology relies heavily on your organization's ability ees ready to deploy to a job site. Some members to adapt your workforce skills to the new operating are only 30% competent in the skills required to environments. Strategically build out the skills your complete the job. This means they lack 70% of the workforce needs with operational skilling and treat 20

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these changes as the catalyst for performance that they could be. In an international energy survey, 64.7% of companies cited that training and developing their existing workforce is how they plan to overcome skills gaps associated with industry advancements. To do so, a complete understanding of current skills and abilities is essential. This visibility enables you to: • Plan strategic upskilling, reskilling, and cross-skilling programs • Quickly transition your workforce to meet new regulatory or client-related requirements • Track workforce development targets for emerging skills and technologies • Capture market share, win work, and retain customers with a competent, qualified, and deployable workforce. • Prove to customers your workforce capability with validated employee skills profiles • Increase prices with a more in-demand work force Regardless of the services you offer today or in the future, focusing on operational skilling is crucial to maintaining business operations and managing the risk that naturally occurs with industry and market changes.

Prioritize Safety and Compliance

Strategic ESG efforts are increasing due to the growing attention from customers, governments, investors, and executives on organizations' environmental, social, and governmental impacts. Research from McKinsey shows that ESG creates value in five ways: top-line growth, cost reduction, reduced regulatory and legal interventions, increased employee productivity and uplift, and enhanced investment and asset optimization. To achieve this value creation, organizations must have plans to maintain the commitment to ESG standards and mitigate the potential risks. The ESG Industry Report Card ranks oil and gas organizations at the highest level of exposure for environmental risk, nearly the highest level for social risk, and an above-average level for governance risk. In an industry that is changing rapidly and at such high levels of risk, organizational plans should center around keeping the workforce skilled

and compliant at all times. As a strategic plan, operational skilling gives you visibility into compliance levels across your workforce. Deploy the right resources to the right jobs and when compliance levels don't meet requirements, understand what training and development programs to initiate to target these lapses in compliance. Without strategic skills data, you increase the likelihood of violations and potentially catastrophic damages occurring on the job site. Operational skilling embeds compliance and safety into every aspect of your organizational culture, ensuring a continuous approach to training and development and keeping your organization adept in accomplishing organizational goals or adjusting to changing regulations.

Workforce Skills Are the New Currency

The volatility of the energy industry can completely disrupt your operations, your organization's competitiveness, and your workforce's efficiency. As you strategically plan how to combat these challenges, update your competency assurance programs, using operational skilling as your skills strategy. It's time to up your game with attracting, onboarding, training, developing, and retaining your workforce. Skills are the new currency that underlines each of these challenges, and operational skilling is the process that can facilitate change. ..................................................................................................... Jai Shah is the CEO and Co-founder of Kahuna Workforce Solutions. With over 25 years of experience in architecting and implementing software solutions, Jai is passionate about connecting HR with Operations through applied technology and rich data solutions. He specializes in guiding the development of skills management applications that actually make a difference to end-users and delivers value to business operations.

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THE ADVOCACY ISSUE/

How to Win the Energy War: Tell Better Stories By Brian Gitt, Energy Entrepreneur

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any people believe an untrue story about fossil fuels: that fossil fuels are destroying the planet and that solar, wind and electric vehicles are the only things that can save it.

I, too, once believed that untrue story. In fact, my belief that fossil fuels were villains, and solar and wind were heroes, guided my career for many years.

Investors and banks view energy companies as “sin” peddlers on a par with companies selling alcohol, tobacco and pornography. They’re convinced fossil fuels are being phased out and perceive energy companies as riskier investments than alternative energy sources. As a result, asset managers are shifting away from traditional energy companies, and major banks are charging higher rates for capital while aligning lending portfolios with net-zero emission goals.

I championed renewable energy for over two decades, first as executive director of a green building trade association, then as CEO of a consulting firm specializing in clean energy, and more recently as founder of a clean-tech startup. I used to believe the worst harm to the environment came from fossil fuels—and from greedy companies exploiting the land, polluting the air and destroying ecosystems in the process.

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I was wrong.


After many years, I finally recognized the crucial role that fossil fuels play in promoting human prosperity and protecting our environment. Fossil fuels are the lifeblood of modern civilization, and their use has improved our quality of life more than anything else in history. Thanks to fossil fuels, we’ve made huge advances in food production, healthcare, housing, sanitation, water quality, transportation, safety, communication and economic opportunity. But most people don’t recognize the benefits bestowed by fossil fuels because the opposition has conquered their mental space. As a result, the storytelling dominance of the opposition now limits the kinds of movements energy companies can make. The myths shape public policy and block new infrastructure development, and they provide the lens through which people interpret—or misinterpret—everything energy companies say and do. No matter how much a company lowers emissions or how many ESG strategies it implements, if it doesn't control the overarching narrative, people will simply see it as a villain trying to look good— like a crooked politician seeking photo ops with children.

about North Face that exposed its move as hollow virtue signaling. The fact is, North Face can’t make its high-performance products without fossil fuels, and the same is true of multiple other products in multiple other industries. Another example of a fossil fuel executive who is changing the narrative – Toby Rice, the CEO of EQT Corp., America’s largest producer of natural gas. He created "Unleashing U.S. LNG," a presentation that recasts natural gas as a hero instead of a villain. He argues that displacing coal with natural gas is the fastest way of reducing CO2 emissions. By 2030, his plan would reduce emissions equivalent to: • Electrifying 100% of U.S. passenger vehicles • Powering every U.S. home with rooftop solar and battery backup packs • Doubling U.S. wind capacity by adding 54,000 industrial-scale windmills These two examples illustrate how the industry can challenge the opposition and reframe the narrative around energy to cast fossil fuels as heroes instead of villains.

Re-educating the public involves more than public relations and ESG checklists. It requires reframing the entire story about fossil fuel energy and crafting compelling counter-narratives, as happened when North Face refused to make a branded jacket for a fossil fuel company in 2020.

When it comes to ideological warfare, whoever tells the best story wins. Energy companies need to stop fighting a defensive battle and go on the offensive. Recapture the narrative high ground and craft compelling counter-narratives to highlight the essential contribution of fossil fuels to human well-being. Remind the American public that energy companies play vital roles in improving our world beyond simply reducing CO2 emissions or producing high-performance outdoor products. Fossil fuel companies also help provide energy security, pull people out of poverty, create economic opportunity, improve water quality and sanitation, prevent deforestation, and promote habitat preservation.

Industry representatives responded by placing a billboard near North Face’s headquarters reading "That North Face puffer looks great on you. And it was made from fossil fuels."

When energy companies tell better stories and present a bold vision of a better future, they can free people’s minds from the false beliefs about fossil fuels that threaten our collective prosperity.

Energy companies need to recapture the narrative high ground and re-educate consumers about how much fossil fuels have contributed to human prosperity. If they don’t, U.S. companies are going to shrink and eventually be pushed out of the market by foreign competitors.

As seen in the cover story, Chris Wright, the CEO of Liberty Energy, made a video, "Thank You, North Face," highlighting the many North Face products that depend on oil and gas. Wright’s video enabled him to tell a different story

..................................................................................................... Brian spent two decades building companies in the clean energy industry, first as executive director of a green building trade association, then as CEO of an energy consulting firm specializing in the commercialization of technology in buildings, vehicles and power plants. Recently, he led business development for a startup developing wireless power. WellServicingMagazine.com

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THE ADVOCACY ISSUE/

Cummins Arabia: Advancing Gender Equity in the Middle East By Maninder Kaur, Cummins Arabia

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ummins Arabia is committed to building a more diverse workforce in the Middle East, taking a major step in that direction by naming Jennifer Rumsey, as President & CEO of Cummins. She is the first woman to lead the company since it was founded in 1919, showing the progress that the global power leader has made in diversity and inclusion. Cummins Arabia is the official distributor of Cummins products and services in the Middle East. Operating in a historically male dominated industry, coupled with the gender dynamics of the Middle East region, Cummins Arabia has also made positive progress in the journey of gender equity. The entity is implementing a data-driven gender equity strategy, driven by senior leadership, and supported by HR. Hiring and attrition trends have revealed opportunities for forecasting and planning to increase the number of females across roles in the organization with a projection of 10% increase in female representation by 2023. “Cummins’ mission is to make people’s lives better by powering a more prosperous world,” Amit Deshpande, Managing Director, Cummins Arabia, said. “Our commitment to diversity and equity will power our future success. The Cummins Arabia leadership team is dedicated to achieving the diversity goals we have set. It is a very important element of our culture to be a great place to work!” Fatima Makhchoumi, HR Leader says: “Various initiatives support our vision including the College Hire Program that supports college students and helps in building a female talent pipeline in mostly male dominant functions like application and engineering. We have also introduced two robust Employee Resource Groups to identify and address key issues that impact women in the workplace and create a platform for dialogue.” Most recently, Cummins Arabia has partnered

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with EFE (Education for Employment) for a program to equip young Saudi women with the professional training necessary to secure employment opportunities. They have set ambitious targets and will continue to pursue objectives in creating a culture that promotes inclusion and women empowerment. One aspect Cummins Arabia is introducing is role modelling inclusion and demonstrating gender equity as key to changing mindsets. One way they are implementing this model is by hiring the “first women” in specific roles. For instance, Magdolin Mikhail, Business Manager for New Power Business - Hydrogen Technology, is the first woman in that role. She is responsible for discovering new growth opportunities in the hydrogen segment by working closely with key end-users, stakeholders, government and industry bodies in the region. “The years of work Cummins has put behind advancing equality in the workplace was one of the reasons I joined the company,” Mikhail said. In the Middle East, women in customer-facing roles, especially in technical or business development, are outnumbered by men. Noha Mansour, Aftermarket Accounts Manager, talks about the challenges she has encountered. “I face challenges daily – like gaining customer’s confidence in my technical capabilities, getting them to share required data and information with me so I can support them adequately, and accessing industrial areas like oil and gas fields. I have patiently persevered and established myself in my role.” Recognizing their progress and the journey that lies ahead, Cummins Arabia is committed to being a positive force in society and the communities in which it operates. ..................................................................................................... As a Marketing Leader, Maninder Kaur supports marketing and communications for Cummins Arabia in UAE, Saudi Arabia and Kuwait. Before joining Cummins Arabia, she gained marketing experience at Microsoft and Airtel.


Noha Mansour, courtesy of Cummins Arabia

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LEGISLATIVE OUTLOOK/

Breaking Down the Inflation Reduction Act By Deidre Kohlrus, Energy Workforce & Technology Council

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n mid-August, President Biden signed into law the Inflation Reduction Act (IRA) which funded $369 billion in climate and energy-related programs, including many that impact the energy services and technology sector of the industry. The provisions in this legislation include the creation and expansion of tax credits, funding for grants and financing of large energy projects, impacts to the federal oil and gas leasing programs and increases in regulations and tax obligations.

Tax Credits

The IRA includes several opportunities for businesses to take advantage of expanded and newly formed tax credits. This legislation extends the investment tax credit (ITC) from 6% to 30% for solar, geothermal, biogas, fuel cells, waste energy recovery, combined heat and power, small wind property, and microturbine and microgrid property for projects beginning construction before January 1, 2025. It also extends the production tax credit (PTC) to 2.6 c/kWh for wind, biomass, geothermal, solar, landfill gas, municipal solid waste, qualified hydropower, and marine and hydrokinetic resources for projects beginning construction before January 1, 2025. The 45Q tax credit has been extended to 2032, which includes projects eligible for direct pay for the first five years. The IRA also significantly reduces the threshold amounts of carbon oxide required to be captured in order to qualify for the 45Q credit. The IRA creates a new Section 45V, which provides a new two-tier, inflation-adjusted, 10-year PTC for clean hydrogen produced at a qualifying facility if the facility’s construction begins before 2033. Additionally, this legislation adds Section 45X, which provides a PTC for manufacturers of eligible components that are produced and sold, which include specific components used in wind, solar and battery projects.

Funding Opportunities

The IRA creates a “Green Bank” that is run through the 26

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Environmental Protection Agency (EPA) which will distribute grants through non-profit organizations who then would contract out commercial enterprises for technology purchases. This includes $12 billion in financing for the rapid deployment of low-emissions or zero-emissions technology and products, and $7 billion to finance community-based zero-emissions technology like rooftop solar panels in low-income and other disadvantaged areas. This legislation also greatly increases funding for the Department of Energy (DOE) Loan Program Office, with an additional $40 billion in funding to the Innovative Technology Loan Guarantee Program. This funding will expand opportunities for projects that utilize innovative technology to reduce, avoid, or sequester greenhouse gas emissions or air pollutants. Additionally, the IRA funds a new program through the DOE Loan Program Office, called the Infrastructure Reinvestment Loan Guarantee Program. This program has received up to $250 billion in loan guarantee authority for projects that retool, repower, repurpose or replace energy infrastructure that has ceased operations or projects that enable operating energy infrastructure to avoid, reduce, utilize or sequester air pollutants or anthropogenic emissions of greenhouse gases. The newly formed DOE Office of Clean Energy Demonstrations will receive $5.8 billion for deployment of Advanced Industrial Technology in energy-intensive industrial processes in the IRA. Additionally, this bill establishes a Methane Emissions Grant Program through the EPA. This $850 million in grants will be allocated to facilities subject to the methane charge for a range of objectives, including “improving and deploying industrial equipment and processes” that reduce methane emissions. The program also allocates $700 million for "marginal conventional wells" to be disbursed in the form of grants, rebates, contracts, direct loans for financial and technical assistance for the same purposes.

Federal Oil and Gas Leasing Program

The Federal oil and gas leasing program had sev-


eral substantive changes made through the IRA. This legislation raises offshore and onshore royalty rates to 16.66% from 12.5% currently. The bill also increases the minimum bid rate to $10/acre from $2/acre, instituted a $5/acre fee for operators to informally nominate lease tracts inclusion in lease sales to the Department of Labor and eliminates non-competitive leasing if leases fail to receive competitive bids at auction. The IRA took a bold step and ordered the Department of Interior (DOI) to hold oil and gas lease sales in order to issue a right-of-way for new wind or solar energy development on Federal Lands. Additionally, DOI must reinstate the November 2021 Gulf of Mexico oil and gas lease sale that was vacated by a federal district court, and requires the Department to hold the Alaska Cook Inlet and two Gulf of Mexico lease sales that were cancelled earlier this year.

Regulatory and Tax Increases

This legislation creates a methane emissions charge which, if enacted, would be the first time the federal government would directly impose a charge, fee or tax on GHG emissions. This fee on methane emissions would apply only to methane emissions from specific types of facilities that are required to report their greenhouse gas (GHG) emissions to the EPA’s Greenhouse Gas Emissions Reporting Program (GHGRP). The charge would start in calendar

year 2024 at $900 per metric ton of methane, and increase to $1,200 in 2025, increase to $1,500 in 2026 and would remain at $1,500 for subsequent years. The biggest uncertainty surrounding the formation of this fee is the potential for businesses to be exempt from the charge if future, final EPA regulations addressing methane emissions are in effect in all states and if adherence would result in equivalent or greater emissions reductions as would be achieved by the November 2021 rule. The IRA enacts a new Chapter 37 and Section 4501 of the Internal Revenue Code that imposes on a “covered corporation” (generally, a publicly traded U.S. corporation) a non-deductible excise tax equal to 1% of the fair market value of the stock of the corporation that is considered “repurchased” by the corporation during the tax year. The IRA also introduces the corporate alternative minimum tax of 15% targeted at certain large U.S. corporations if such corporation’s adjusted financial statement income which is similar to book earnings prepared in accordance with U.S. GAAP, exceeds certain threshold amount. The Energy Workforce Government Affairs team will continue to monitor these funding and tax opportunities and regulatory changes as they are enacted. WellServicingMagazine.com

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INTERNATIONAL OUTREACH /

Energy Workforce Hosts State Department Officers

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nergy Workforce & Technology Council’s esteemed State Department Houston Energy Course kicked off in August with a highly anticipated return to in-person training sessions. Twenty-seven U.S. foreign and civil service officers stationed in 14 countries traveled to Houston to participate in an immersive look at the oil and gas industry from all sectors and angles of the value chain. This was the return of the first in-person course after two years of virtual programs in the wake of the COVID-19 pandemic. Students in this session of the program had the opportunity to hear presentations from industry and subject matter experts from Baker Institute at Rice University, Baker Hughes, Baker Botts, BP, Chevron, ConocoPhillips, Exterran, GaffneyCline, Halliburton, HMH, New Climate Ventures, NOV, Schlumberger, TechnipFMC, Veriten, Weatherford and the Bureau of Energy Resources, U.S. Department of State. Participants engaged in question and answer sessions with company representatives about topics such as the global role of the energy industry, the future of energy, exploration, business development, technical aspects of drilling and constructing a well, onshore and offshore issues, midstream and downstream topics, and technologies being developed and deployed. This in-depth overview of the energy industry helps the FSOs make informed energy policy decisions at their respective international posts, and builds lasting relationships between the students and industry experts. Energy Workforce founded the training program 29 years ago to educate global energy influencers on the innovations and business dynamics of the energy industry. The program strengthens relationships between industry and U.S. interests abroad and promotes better-informed decisions at embassy posts around the world. The next session takes place in January 2023.

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MIDTERM ELECTION OUTLOOK /

Former White House Press Secretary Ari Fleischer Offers Election Outlook

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nergy Workforce & Technology Council hosted former White House Press Secretary Ari Fleischer for a luncheon to discuss the 2022 midterm elections. Attendees had the opportunity to hear Fleischer’s expert analysis of potential outcomes of these important races at the local and national level, and how these outcomes might impact the energy services and technology sector of the industry. Fleischer’s expertise comes from his long career serving in high-level positions, most notably as the White House Press Secretary and primary spokesperson for President George W. Bush, where he delivered the daily White House briefings from 2001 to 2003. His presentation gave an overview of the political climate in America and what issues are most important to voters as they head into the midterm elections.

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“I think the job for your industry is to really be the articulate, responsible Paul Revere of our society," he said. "You’ve got to be the ones shouting the warning of what’s coming, if we don’t manage any type of transition well. It is a simple fact that fossil fuels will be and must be a part of our transition for decades.” During the event, he also discussed ways the oil and natural gas industry could be affected by the outcomes of the elections. He shared figures from the past four presidential elections and how trends have shifted among different demographics, and what those shifts may mean for the next elections. This presentation will help companies in the industry anticipate what may be in store for the next two years of the regulatory and political environment. He encouraged the industry to be vocal about the realities of the current energy situation the world faces, and not be afraid to be outspoken advocates for the industry.


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CONGRESSIONAL SPOTLIGHT/

Rep. Kelly Armstrong, R-ND

A life-long North Dakotan, Rep. Kelly Armstrong has represented North Dakota's at-large Congressional District since 2019. He serves on the House Energy and Commerce Committee. You know the energy industry well from when you joined the family business, which includes oil and gas exploration. What lessons from the industry do you carry on to this day and to your work in Congress? I have been involved in the oil and gas industry my entire life. I have been there when times were good and the sky was the limit, and I have been there when times were tough, and every DC pundit was saying the industry’s days were numbered. One important lesson I learned was that the biggest threat to the industry isn’t a foreign actor or something out of our control, but it is the federal government. Many of the most innovative and enterprising people I know work in the oil and gas industry. They are always striving to find ways to increase production, improve efficiency, and develop resources in an environmentally responsible way. They want to improve their communities and care for the land because they live in the oil patch. Their kids go to school there. They go to church there. But the activists within the federal government, particularly in recent years, have made it clear they believe Washington knows what is best for the industry, not the experts. Any opportunity we get to return decision making to the lawmaking bodies closest to the people, state and local governments, the better. We need to get the federal government out of the way, allow technology and innovation to thrive, and continue to deliver the reliable and affordable energy Americans and the world need.

As a new Congress approaches, what issues are you looking forward to working on for Americans and your Constituents? The first bill in the next Congress needs to be to secure the Southern border. We have an unprecedented 32

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crisis at the border with record numbers of illegal crossings affecting communities not just in the Southwest, but across the country. On the energy front, we have to get serious about permitting and litigation reform. My state can produce the affordable energy we need, but it won’t matter if we can’t get a transmission line or a pipeline in to transport it to market. We need to streamline the federal permitting process because it is duplicative, burdensome and can take too long to complete. We also need to reform the permits process. Because of uncertainty, it makes it nearly impossible to raise capital for projects. And I want to be clear, any permitting reform without litigation reform won’t be enough. We know all too well that groups have found a way to slow down a project for decades if they wish to because of the ability to litigate at every step.

Do you think that U.S. policymakers are getting the message about how important energy security is and that oil and gas are a huge part of this formula? We have seen some movement by the Biden Administration in some respects but at the same time they continue to limit access to leases on federal lands and waters. I work every day to educate my colleges in Congress on the importance of having a reliable energy supply. We have to bring this conversation to non-energy producing places. What we do is important for their future too. North Dakota is proud of what we do, which is feed and fuel the world. It is states like mine – and industries like oil and gas – that made our country energy independent in the first place. Too often, lawmakers believe the answer to any problem is a new federal program or additional regulation, regardless of the harm done to the country. Policymakers won’t get the message unless we share it with them, and I am proud to share our incredible success story with anyone who will listen.

North Dakota recently became home to the first facility permitted under state primacy to capture


and store CO2 in the United States. The state was the first to be granted primacy from the U.S. Environmental Protection Agency in 2018 following by Wyoming in 2020. Why is allowing states primacy important for the development of such projects that are critical to emissions reduction? Do you expect North Dakota to be a leader in permanent CO2 storage given the geology? We are incredibly proud to be leaders in carbon capture and storage. This wouldn’t have happened if we didn’t have primacy over the EPA. The federal government is a blunt instrument. It can either regulate or throw money around. What it can’t do is be responsive to the needs of producers to make sound business decisions. Having primacy allowed lawmakers in Bismarck to set an attainable mechanism for permitting, regulating and executing a program that will be economical and make sense. North Dakota will continue to be a leader in this technology. While Red Trail Energy near Richardton is the first project to begin operating in our state, there are many others underway. We have Coal Creek Station near Underwood, Project Tundra near Center and many more groundbreaking initiatives. I am confident that our state provides an example for others across the country to emulate and shows the way forward to providing reliable energy for future generations.

Are you bullish on North Dakota continuing to benefit from the energy expansion? What is your long-term outlook for the state and its workforce? North Dakota is a state that attracts people with ambition. In the Bakken, we have some built-in challenges, like the transportation discount and interesting weather, but we have great geology and a lot of sweet crude to extract. We became one of the top oil producing states in the country because we have a good business and regulatory environment and because a bunch of really smart people risked significant capital to develop our resources.

Like the entire country, the current workforce shortage is a significant barrier to expansion. In a state like North Dakota, these shortages cut across the entire economy, not just the energy sector. When the Bakken is short on truck drivers, the rest of the state is soon to follow. We have to be smart about the way we educate America’s future workforce and meet specific needs. Job training that truly represents the needs of the economy, coupled with attracting workers from across the country to join us in North Dakota, will provide our energy producers the stable workforce needed to continue fueling the world.

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EVENTS CALENDAR/

NOV EM B E R

JUNE

NOV 2 ABU DHABI Middle East Chapter Regional Meeting

February 21 HYBRID Executive Leadership Program: Advanced Business Development

June 6-7 MIDLAND Field Operations Leadership Program

NOV 4 DUBAI 2022 Middle East Chapter Golf Tournament

February 22 HYBRID Executive Leadership Program: Strategic & Branded Executive

June 19-20 VIRTUAL Field Operations Leadership Program

NOV 8 HOUSTON Shoot for the Stars Marksmanship Tournament

February 23 HYBRID Executive Leadership Program: Engaging & Influential Leader

NOV 9 MIDLAND Permian Basin Chapter Luncheon with Lori Blong, Midland Mayoral Candidate

February 23 HYBRID Executive Leadership Program: Engaging & Influential Leader Permian

NOV 17-18 HOUSTON Operations Leadership Program

DECEM B E R December 6 HOUSTON Workshop: ESG & Sustainability Reports

F EB RUA RY February 7-9 WASHINGTON, DC 2023 Washington, DC Fly-In

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M A RC H March 8 VIRTUAL Executive Leadership Program: Inclusive Leader March 9 VIRTUAL ESG Certification Program

APRI L April 26-27 AUSTIN 2023 Annual Meeting

S E P TE M B ER September 25-26 VIRTUAL Finance for Non-Financial Professionals

O CTO B E R October 4-5 HOUSTON Oil & Gas 101

N OV E M B ER November 16-17 HOUSTON Operations Leadership Program


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